Question
Wardell Company purchased a mini computer on January 1, 2011, at a cost of $41,700. The computer has been depreciated using the straight-line method over
Wardell Company purchased a mini computer on January 1, 2011, at a cost of $41,700. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,200. On January 1, 2013, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. |
Required: |
1. | Prepare the appropriate adjusting entry for depreciation in 2013 to reflect the revised estimate. (If no entry is required for a particular event, select "No journal entry required" in the first account field.) |
2. | Prepare the appropriate adjusting entry for depreciation in 2013 to reflect the revised estimate. Assuming that the company uses the sum-of-the-years-digits method instead of the straight-line method. (If no entry is required for a particular event, select "No journal entry required" in the first account field.) |
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